gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c714c74b075ba8ca
Response Measures
None
Description
Bank was closed by the state auditor at request of its board and later placed in receivership.
Events (3)
1.June 17, 1931Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals and financial hysteria following the closing of the Waukegan State Bank and publicity about its condition.
Measures
Depositors were assisted in withdrawals at First National; Waukegan National directors decided against opening to avoid a threatened run.
Newspaper Excerpt
Move Is Taken To Protect Interests Of Depositors Who Did Not Withdraw Funds, And Indications Are That The Bank Will Reopen Within Ten Days; First National Takes Care Of Heavy Run Of Withdrawals
Source
newspapers
2.June 17, 1931Suspension
Cause
Government Action
Cause Details
State auditor closed the Waukegan State Bank at the request of its board (formal suspension/closing by state authority).
Newspaper Excerpt
The State bank ... was closed yesterday by the state auditor at the request of the board.
Source
newspapers
3.July 28, 1931Receivership
Newspaper Excerpt
Fred Brown Whitney was today appointed receiver for Waukegan State bank by State Auditor Oscar Nelson according to dispatch from International Service.
Source
newspapers
Newspaper Articles (24)
1.June 19, 1931Waukegan News-SunWaukegan, IL
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SHUT-DOWN ORDERED BY BD. OF DIRECTORS MAY BE TEMPORARY, REPORT
Move Is Taken To Protect terests Of Depositors Who Did Not Withdraw Funds, And Indications Are That The Bank Will Reopen Within Ten Days; First National Takes Care Of Heavy Run Of Withdrawals And Is Safe.
To protect the interests of depositors who declined to withdraw their funds following the closing of the Waukegan State bank yesterday, the board of directors of the Waukegan National bank decided against opening the institution this morning in the face of vast horde of depositors who were waiting to get their money. Indications are that the bank will be reopened within few days. As word of the closing of the Waukegan National was circulated around town, vast crowds gathered at the city's busiest corner, Washington and Genesee streets, and terrific was started on the lone maining banking institution. the First National bank. Charles Nelson Steele, greatgrandson of the founder of the First National and at present the institution's president, radiated confidence he moved in and out among the crowds in the foyer, helping the people make out their withdrawal slips and smilingly promising that all would get their money. Contact with Steele caused many those who came to to throw their glips. step attempt to reason with neighbors in the who were. caught in the general financial hysteria. Money Brought In Huge amounts of breaking the record brought into the city yesterday when the Waukegan State bank closed, delivered to the First National today and with the exception of depositors seeking to withdraw. the situation calm and confident. Faced with heavy run that threatened the safety of the institution this morning. the Waukegan National directors decided against opening and called in H. Reimnational bank examiner out of the Chicago office the chief national bank examiner. Mr. Reimers was temporarily charge of the bank but was to relieved today by Harry W. Walker. national bank examiner. Mr. Reimers failed to any very serious consequences in the situation and intimated that in his opinion the would be reopened within few days. To Reopen Safety Vaults To avoid confusion the safe deposit vault in the Waukegan Safe Deposit company, subsidiary the Waukegan National bank, was closed the but will reopened as soon the hysteria subsides. There comparatively few people gathered about the Waukegan National during the H. Burnett, president of the Waukegan National, his home after the meeting and was reported to be considerably upset by the turn events. He was unable to make statement. The capital stock of the Waukegan National $250,000 and the surplus $150,000 according the bank statement of March 25. The undivided profits, net, that time were $26,845 and the bank carries serve The deposits amounted to with total assets $4,076,071.34. The bank building. furnishings and equipment are valued $248,915.10. List Stockholders Stockholders of the Waukegan National Bank and the number of shares credited to each for tax (Continued on Page 2, Column
2.June 19, 1931Waukegan News-SunWaukegan, IL
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CIVIC LEADERS BEG PEOPLE TO SHOW COURAGE
"We, the executive committee of the Chicago Chamber of Commerce, have an unbounded faith in Waukegan's financial institutions, and firmly believe that the situation is only temporary,' John Fulton, president of the chamber of commerce, declared today after an executive committee meeting at the Clayton hotel. confidence the future Waukegan's three banks, the First National, the Waukegan National, and the Waukegan State banks. was unanimously passed by the committee members the meeting, and depositors in any those financial concerns were asked keep faith with Waukegan and its future. Despite the hysterical rumors circulating through the city after the closing the State bank, and the clossing of the can National bank, chamber leaders feel that Waukegan will out of These rumors, believe, are absolutely groundless and will be proved false within the next few days.
First National Makes Statement
TO THE PUBLIC OF THE CITY OF WAUKEGAN AND LAKE COUNTY, ILLINOIS: We, the undersigned officers and directors of the First National Bank of Waukegan, state that said bank has been in business in the City of Waukegan, in the same for seventy-nine and upwards; that the assets said bank have never been in more liquid condithat they are at the present time; that the depositors will be paid in full; have adequate cash to meet any emergency. This bank was founded by Charles Steele, the grandfather of Charles Steele, the present president, has been known throughout Lake County Illinois as the "Steele" Bank during all of that period.
Those who know the financial condition this institution and the men behind it, its record in the past, should public duty to this institution, and the City of Waukegan, assure people who are not so well acquainted with its condition and thereby restore confidence for benefit not only of an old, established financial structure but for the benefit of the people and the business men our city. THE FIRST NATIONAL BANK OF WAUKEGAN, ILLINOIS, Banking Corporation. By CHAS. N. STEELE, Its President.
Attest: W. D.
Secretary. HARDIE, WM. JONES. ALVAH ROGERS. CLAIRE EDWARDS, ALEXANDER BEAUBIEN, BERTHA M. STEELE, RALPH DADY, CHAUNCEY J. JONES, Directors.
3.June 19, 1931Waukegan News-SunWaukegan, IL
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North Chicago News
DALZIEL SOUNDS OPTIMISTIC NOTE
Favorable Audit Quells Fears Of North Chicago Bank Depositors.
Sounding note of optimism, W. R. Dalziel, president of the Lake County State bank of North Chicago, today declared that the closing of the Waukegan State and Waukegan National banks have had very little effect on depositors of the local bank. "We have had fairly moderate withdrawals during the past two days," Dalziel said, "but no heavy run is anticipated.' At 9 o'clock this morning when the Lake County State bank opened its doors, not one person was on hand to withdraw their money from the North Chicago banking institution, it was learned. Announcement that the Waukegan National bank had closed its doors this morning, caused some flurry throughout North Chicago, and small number of depositors made withdrawals before noon. Increased withdrawals today, however, were attributed to the fact that number of people became excited when they learned that the bank was crowded with people. President Dalziel stated, however, that one of the local industries paid its employes today and most of the business transacted consisted of cashing of checks. Directors of the Lake County State bank and number of the large stockholders all expressed confidence in the financial condition of the North Chicago bank. "Two weeks auditors made careful audit of the Lake County State bank," Dalziel stated, "and the report was most favorable. A note of confidence was expressed at noon today in the lobby of the bank when James F. Stiles, director, and President Dalziel addressed group of depositors who had intended to withdraw their money. Both men stated that the bank was in sound financial condition and depositors were in no danger of losing penny of their money.
4.June 20, 1931Chicago TribuneChicago, IL
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WAUKEGAN RUN FORCES ANOTHER BANK TO CLOSE
The Waukegan National bank Waukegan, III., closed its doors yes terday following run which developed after the closing of the kegan State bank on the previous day. At the request of the directors the institution was taken over by the federal bank examiner. The bank had deposits March 25, last, capital and surplus of $150,000. Officials pressed the hope that an early would be The State bank, 5939 West institution with deposits of $80,000, was closed yesterday by the state auditor at the request of the board of The bank's capital was listed as $100,000 and surplus as Depositors of the Sheridan Trust and Savings have organized comof which is headed by mittee 25 B. Herbison to look after the inter ests of depositors. The committee has in the bank' will cooperate with the state and auditor in working out a plan of liquidation of the bank's assets. A similiar has or. by the depositors of the South Side Bank and Trust company The committee is headed by Eugene Abegg. Other members are Dr. Christopher S. John B. and Lewis F. Jacobson. will investi- at. torney. The the feasibility of early gate an dend for depositors and the possibil ity of reorganization.
5.July 28, 1931Waukegan News-SunWaukegan, IL
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DECKER AND DECKER ARE ATTORNEYS
State Auditor Nelson Today Names Local Receiver For Waukegan State Bank At $5,000 Salary.
Fred Brown Whitney was today for Waukeappointed receiver gan State bank by State Auditor Oscar Nelson according to dispatch from International Service. The law firm of Decker and Decker was named as receiver's attorneys and Whitney's salary was fixed at Whitney's appointment was generally believed assured after the carried an exclusive story listing Whitney as the leading candidate for the place with John R Fulton and W. Smith mentioned as possibilities. Later Mr. Smith declared that he did not want the job and had never considered seeking Mr. Whitney, whose father established the first state bank be opened Waukegan, was considered excellent choice for the position because of his experience, his ability along financial lines and his know ledge of the local situation as as his personal wealth which would permit him do the best possible for the depositors the bank yet accept only nominal salary for his
Start Liquidation Liquidation of the bank's assets be soon the situation and determine done about some weeks. however, before he will be on percentage to to the Under the state law, state banks that are closed make payments to depositors until all assets of the bank have been liquidated and no further funds are available. While he has not yet had an portunity to look over the bank. Whitney expressed the hope today that he would be able to pay the depositors 100 per cent. First reports indicated that if Mr. Whitney were appointed receiver, would attempt to reorganize the bank (Continued on Page 2, Column 4)
6.July 28, 1931Belvidere Daily RepublicanBelvidere, IL
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KNIFE IS ONLY CLEW July definite clues have been found which may lead to the solution of the murder an unidentified woman, about 70 years old. whose body found lying ditch in Louis county. authorities today continued their investigation Near the body of the woman was found long knife.
NAME BANK RECEIVER July D. Whitney, of today was appointed receiver for the Waukegan State Bank by State Auditor Oscar Whitney's salary fixed at year.
7.August 4, 1931Waukegan News-SunWaukegan, IL
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OF ELECTRICIAN ABANDONED
STATE BANK Carlstrom In New Ruling On Poor Relief DEPOSITORS LOCAL WORKERS SAYS COUNTY GIVEN WRIT His Swell Idea
STOP NEW
Plumbing and Building Inspectors Placed On HalfVisit Winthrop Harbor To Time Basis By Council As Halt Construction Latest Economy Move. Having Outside Labor.
Payroll cuts aggregating month saving the city Waukegan of about $425 were effected by the city council last night when the position of electrical inspector ing yearly abolished and the building and plumbing inspec put on half-time and basis The inspector's position formerly held by Edward Freberg. was when became known by the council that the job not required by state statute had been the common belief. Cities the size Waukegan may have an electrical commission they desire consisting of five men with an ex-officio head to be direct charge of all electrical inspection Mayor Peter W. Petersen predict ed today that the job will again be created stating that the desire the council to permanently abolish that position. Stephenson Makes Motion The move to abandon the trical inspector's job made by Alderman Stephenson who presented resolution this efwhich went through for unanimous The second step in the adminis tration's policy of place William Cliff. plumbing inspector. under the supervision of City Engineer Henry Bleck at an annual salary of $1.200 working on basis. The plan went into effect immediately on passage by the council last night Cliff's former salary was The third man hit by the econothe council was Russell Jack, city building who on half-time basis to draw $1.020 yearly. Jack, remain building department under Fred building missioner Jack formerly drew $2, 040 believed that these pay roll cuts are intended by the council to be permanent but only (Continued on Page 2. Column 4)
Organized local union workers, fol. lowing out their insistent that all local be used on Lake county jobs, were reported to have visited two construction jobs in Winthrop Harbor, 250 strong, and demanded that the work be stopped unless two Kenosha men employed there were let The jobs were halted once by the contractor in charge Non-union builders. in the Peoples Forum of the NewsSun today. voice their approval of the efforts the unions to have local men employed an all Lake county jobs but object to having house construction jobs stopped where nonunion men are employed. They maintain that the important thing at the present time is to as many as possible regardless of whether they are or They also that tremely hard induce people build at the present time and when success met in this respect, tractor. he union or nonunion, should not be molested on the
News-Sun And Others Granted Temporary Injunction To Halt Negotiations On Promissory Notes Held By Bank.
Another step in the thorough investigation the affairs of the Waukegan State Bank was taken today when the Waukegan News-Sun and other depositors were granted temporary injunction by Judge Edward D. Shurtleff of the Circuit court restraining the officers of the Waukegan State Bank, the National Bank of the and the Central Republic Bank & Trust Co. from negotiating, collecting or transferring the promissory notes of the petitioners until further order of the court. The petitioners are the Keystone Printing Service, Inc., (The Waukethe Taylor Wholegan sale Grocery Co., Inc., Weeks Waukegan and George Anderson Antioch The defendants are the Waukegan State Bank, the National Bank of the Republic and the Central Republic Bank Trust Co., sides individuals who are officers and directors of the institutions Retain Attorney. In co-operation with various other the Waukegan News-Sun several days ago retained Attorney William R. Behanna of the firm of Runyard & Behanna to conduct inquiry into the transactions of the Waukegan State Bank when depositors who are debtors the institution received that holds their notes and ment in full, irrespective of ies on deposit in the closed bank. Among the defendants named in the petition is George Turnquist. who carrying on the task of collecting the alleged to be the National Bank of the Repub-
It is the purpose of the action taken by the News-Sun air the financial deals that allow the Chicago bank the right to demand payment on notes without allowing depositors to set off at the closed bank against their notes. In the petition stated that the petitioners are informed that during the year 1929 the banking business was prospering because of the rate of interest and the demand for call money that the National Bank of the Republic in anticipation
(Continued on Page 2. Column 3)
8.October 3, 1931Waukegan News-SunWaukegan, IL
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CONTINUANCE OF 15 DAYS IS GRANTED
Judge Dady Grants Nelson's Lawyer 15 Days Before Motion To Quash Indictment Is Made: Bonds $10,000.
Oscar Nelson, state auditor of public accounts, today gave bail on two indictments, one charging misfeasance and the other conspiracy. before Circuit Judge Ralph Dady Nelson appeared with his attorney. Albert Chicago, who asked for continuance of 30 days before he made motion to quash. The court allowed 15. will Move to Quash Fink said that he would make motion to quash, enter plea in abatement or plea of not guilty. "That is certain," Nelson said Fink mentioned the not guilty plea. Bonds were set $5,000 each indictment and furnished the Fidelity and Casualty company New York. "Nothing to Say," Nelson have nothing to say since haven't the indictment. Mr. Fink has it now, and when chance to go over may make some public am surprised that the grand could construe my actions in trying keep bank open as conspiracy. Everyone has treated me splendidly here.' Nelson
Nelson came to Waukegan with Fink and his He returned to his home in Geneva in his automobile that had been driven here by the chauffeur earlier in the morning
Talks With Whitney had short talk with Fred Brown Whitney. receiver of the Waukegan State Fink asked for delay because he said he had to appear in federal court Tuesday as defense counsel for Capone. The government had advised him that would take nine days to put in the evidence of the prosecution. all it may take me two weeks," Fink George who was chairman of the board the National Bank of the Republic, and William H. Miller. who had been vice president of that institution and had continued on the same capacity after had became the Central Republic
9.December 11, 1931Waukegan News-SunWaukegan, IL
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NELSON TO ASK SEPARATE TRIAL
State's Attorney Notified Today That State Auditor Wants Trial Alone.
Separate trial will be asked by State Auditor Oscar Nelson Saturday Woodstock before Circuit Judge Edto notice ward State's Attorney A. V. served on Smith. George H. Woodruff. former presiNational Bank of the den of the Republic, and O. Geyer, president of the Waukegan State bank that failed with deposits of 250,000, co-defendants with Nelson in this indictment charving em-
Col. Smith To Oppose Col. Smith said that he would resist the motion. Nelson, through his counsel, Attorney Albert Fink, claims that evidence in his behalf probably will against the other two dereact and that for this reason fendants there should be severance. Evidence from Woodruff and Geyer would be detrimental to Nelson, Fink also contends. trials would entail conSeparate siderable more expense to the county, Col. Smith said. Records Transferred Circuit Clerk L. Wilmot today completed the preparation of the which has be transferred record, left with it this to Woodstock, and to turn over to the circuit morning clerk McHenry county. Shurtleff expected to rule Judge is tomorrow on the to the indictment against William H. Miller, conspiracy in this also charged whose case is set for true bill. but Waukegan before Judge hearing in Shurtleff. county has The trial in McHenry (Continued on Page 2, Column 5)
10.January 14, 1932Chicago TribuneChicago, IL
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AUDITOR NELSON WINS SEPARATE BANK CASE TRIAL
His Plea for Early Hearing Denied.
State Auditor Oscar Nelson was granted separate trial yesterday by Circuit Judge Edward D Shurtleff at on charge in connection with the failure of the Waukegan State bank last June 17. The auditor lost his plea for an early trial after heated argument State's Attorney Smith of elected to try Norman O. Geyer president of the defunct bank. and George Woodruff for. mer the National Bank of the Republic of Chicago, before Nelson is arraigned. Geyer and Wood. ruff were scheduled to go on trial Monday, plea for in behalf of Woodruff was denied. Indictments Charge Fraud. indictments against Nelson, Geyer, and Woodruff charge con spiracy to defraud in with the failure of the bank the bank's closing there were deposits of $1,224,000 and only $38,000 in cash on Prosecutor Smith has charged. Two others named at the same time are trials. William H. Miller. former vice of the Chicago bank, be tried in Lake county by Judge and John Murray former vice presi dent of the is to be tried in county by Circuit Judge Ralph Dady David Joslyn Nelson. asked that Nelson be tried first since he is candidate for reelection and the trial of oodruff and Geyer may not end until after the primaries. He months will be spent in attempting to prove the insolvency of the Waukegan bank before its actual closing. as charged by to change his decision to try the state auditor
Denies Politics in Trial.
"Of course, you know this insolvency applies to politics as well as other the judge then, Joslyn, are busted. We're Smith leaped to his feet to that there was in his Joslyn his charge that there was politics in the The judge smoothed over the disAttorney George T. Bucking ham, representing made plea for severance in behalf of his which Expect Sheridan Dividend.
Floyd E. Britton, attorney for the of the defunct Sheridan Trust and bank, reported almost in and securities will soon be available for the bank's de positors. He made his report before Circuit Judge Michael Feinberg who Is seeking uncover assets hidden from the Britton discussed in detail trans actions between the Foreman National bank and the Sheridan Trust and Savings bank spiking rumors that in securities had been moved from the latter bank after its closing He said securi ties, as deed to loan of 780,000 moved after the closing as the deed Securities Up for Sale. of the securities $442,391 is now available for sale aid depositors. In addition, he said, there is $530,000 in on deposit with the Bank and the the judge quesMrs. Hannah Zuker 5329 Kento the Mrs. Zuker was as Hetty she reputed to have real estate holdings four and five million dollars. She told the Judge she was in default on all her properties and was on her sons for and she now lives on $20 The judge her to return this morning with her sons.
11.February 9, 1932JG-TC: Journal Gazette and Times-CourierMattoon, IL
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TRIAL IS DELAYED.
Woodstock, lay was encountered today in the scheduled opening of State Auditor Oscar Nelson's conspiracy trial before Judge D. Shurtleff. State's Attorney Smith of Lake counasked that the case be continued pending reorganization of the closWaukegan State Bank, the fallure of which resulted in Nelson's indictment.
12.February 20, 1932The DispatchMoline, IL
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DROP IF BANK
Waukegan, Feb. the defense of State Auditor Oscar Nelson wished him tried for conspiracy the failure the Waukegan State bank, Lake county thorities announced indictments him and five bankers would agaist be if the bank is reorgandropped ized and depositors of repaid. The reorganization yesterday the State bank would be consolidated with the Waukegan National bank within three weeks and reopened and Col. Smith, he would nolle prosse the Nelson and the others provided the depositors are paid dividend when the bank opens and the balance in David Joslyn of Woodstock, chief the Nelson would insist on but added that they claim trial would obstruct attempts the bank, one would reopen want to do that." Auditor Nelson, at his home in Geneva, declined comment. Nelson has been tried and quitted charge out of the bank's growing The others facing charges of their bank dealings President Norman closed bank, George ruff, and Miller, former vice president National Bank of the Republic and John Murray Conof Chicago, nors and Milton former vice of the Waukegan president bank.
13.February 24, 1932Chicago TribuneChicago, IL
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BANK RECEIVER ORDERED TOPAY VETS $250,000
Judge Gentzel Also Asks Prosecutor to Act.
Superior Judge Robert E. Gentzel yesterday ordered the receiver for the Northwestern Trust and Savings bank to restore $250,000 in cash from the assets of the institution 100 disabled war all wards of the Probate in the form of trust funds had been deposited The given when the court that oficials of the bank had used the trust funds without of the court to purchase worthless real estate bonds. Judge Gentzel also ordered the re ceiver, David E. Shanahan, state representative and of the general assembly to report his findings Xo the state's attorney's office He asked that Receiver Shanahan report 6 him the progress of any prosecution of the bank officials within the next week, saying that if the delayed he would take the prosecu tion into his own Veterans in Hines Hospital.
The bank had been appointed trus tee for the veterans. most of whom are patients at the Edward Hines Memorial hospital, by Probate Judge Horner. When the institution was closed last June the receiver prepared an audit of all the trusts. containing the reports of the bond submitted for to the law bureau of the veterans' hospital Attorney Frank A. Barry, representing the returned the report, ing to the bonds on the ground that most of them in default, and asserting that the court had not approved the purchase of any of the The charges were referred to Louis Behan, for Receiver Shana han, and the report laid before Judge Gentzel yesterday Orders Receiver to Take Bonds.
There is only one thing to udge Gentzel said, "replace the bonds with cash from the assets of the bank, and take the bonds for what they are anything worth. The other will suffer but there nothing else for the court to do under the law. want this entire matter placed in the hands of the state's attorney so that the guilty individuals, whether they be the trust officers of the bank the will be prosecuted. If is no from that within one week I'll take over the The president of the bank was Frank Lackowski, and the cashier, John Budzbahn, the receiver said. During the years that the bank for these funds It is stated that there have been several trust officers. John Bain, head of the defunct bank chain bearing his name, will be arwith five others today before Chief Harry M. Fisher in the on charges of conspir acy growing out of the bank failures Nelson Trial Delayed.
The of State Auditor Oscar with conspiracy to depositors in the closed Wau kegan State bank, was postponed yes terday at Woodstock before Circuit Judge E. D. Shurtleff to March 21 of Woodruff. former of the National Bank of the Republic, and Norman O. Geyer, former president of the Waukegan State bank, was set over to April 4. They were indicted with Nelson, but severance. The postponements were granted by of attorneys, pending com pletion of negotiations to reopen the closed bank. State's Attorney A. V Smith of Lake county has said that he will drop the case if depositors are guaranteed against loss. Louis Kaufman. of the Kaufman State bank, 124 North La
14.April 21, 1932Chicago TribuneChicago, IL
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INDICT PRESIDENT OF CLOSED INDIANA BANKS AS EMBEZZLER
Michael Kozacik Jr., president of the defunct Indiana Bank of East Chicago and the First Indiana State Bank of Gary, also closed, was indicted by the Lake grand jury at Crown Point, Ind., on a charge of Judge Mar tin Smith set his bonds at $20,000. of $95,000 in bonds, made as collections by the bank for certain in which Kozacik was interested. At Waukegan State's Attorney A. Smith of Lake county announced yes. terday that he would insist upon trials for two bank case defendants next Monday if the proposed Citizens Trust and Savings bank at Waukegan is not opened by then. The proposed bank is being planned to take over assets of the closed State and Waukegan National banks. The defendants are George Wood ruff, Chicago banker, and Nor man O. Geyer, former of the Waukegan State bank. Their cases are scheduled before Judge Ed. ward Shurtleff at Woodstock On of their cases, the tor said, the charges against State Oscar Nelson would be tried. Today Judge Shurtleff will sit in the Waukegan to.set a date for trial for William H. Miller, orginally indicted with Geyer, Woodruff and Nelson.
15.April 27, 1932Waukegan News-SunWaukegan, IL
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DIVIDEND AT DISBURSED
(Continued From Page ity, but never developed and the time, exceeded 200 people. number of depositors with money coming discovered that the payment check would continue day after all were given out, which led them delay demand in hope that there would be no waiting days when they called for their money. Depression From the National bank learned number the old Waukegan National had opened accounts with the last June, were their checks This hardly expected, and from this was that the depression far Waukegan concerned has The large number of women waiting accounts verified draw their dividend indicated that the majority the heads of the housestill were employed. that the accounts were savings the housewife their children in school. Staff Work Heavy Ericson staff were tired when faced work this morning had been necessary for the them night order checks could distributed learned that any delay be fair to the the agreement was night prepare the for the checks newly from waiting one more The and due obligations tinued through the without interruption the dividend bursement, as this has connection with the accounts This work collection will have conthrough receiver order liquidate institution othe
Whitney Makes Statement Late yesterday statement sued by Fred Brown Whitney receivthe Waukegan State bank. which revealed the progress in that bank. The gist this statement, the first by the final reappraisal the bank had form being set down in pershape. Just he asserted. as this data he will present for approval and then decide whether he will file petition for the sale the assets The petition prepared some time ago and held for actual presentation the pending reappraisal under his direcpossible formal presentation Whitney completion the reappraisal that he The complete statement made by receiver follows: Some person, whose identity the Receiver the unknown Waukegan State Bank, informed that Receiver had had the press desk nearly week his for the sale the assets petition the bank and one article the that press carried was holding up matthe the inal trials July, when he stated cepted the the he the community taking without fear trust, and he had his criminal procivil ceedings never would. So far matters, he indifferent any suggested between disposition lation and any criminal the bank's assets prosecution. that the Receiver The fact for the has never seen of the assets the data which petition the upon completed must be the in buyers of the expense of assets. So many unauthorized and untrue have the press tions the result much deems proper ceiver the public what the outline far as the situation now concerned March for Previous several weeks, auditors of others than ploy detailed of the made reported their unaffairs have disclosed principals, the audit presented times the requested the Committee projected bank confer31st. but the prior no party conferences and the negocarried the the last the assets bank are the property the the because bank depositors, insolvent the hopelessly of the assets the iness concern of the depositors. the facts records session the Receiver are inspection depositor. an officer the Court in interested in and based such in and adopting procedure honestly protects depositors. On March 1932. Chicago represented the Receiver, behalf that they would bid sufficient pay the bank's preferred 100% general claimants, including depositors than preferred, cents the dollar, provided Receiver offer bank's assets for The preliminary that would not himself the until could about assets are worth. the expense, and largely behalf the proposed undisclosed purchasers,
16.May 11, 1932The Daily SentinelWoodstock, IL
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SHURTLEFF OUST WAUKEGAN RECEIVER
Fred Brown Whitney, receiver of the Waukegan State bank, yesterady was cited into court for noon today by Judge E. D. Shurtleff to show cause why he should not be removed as receiver. The citation was ordered after scathing examination of the receiver that started with short morning session, and then was adojurned to the lunch hour. "You will come in tomorrow at noon and show reason why you should not be removed as receiver for inaction and not performing your duties as receiver," Judge Shurtleff ordered. "You can remove me now." Whitney replied without a pause "Come in tomorrow at 12 o'clock," the court repeated, and Whitney left the
Judge Delves Deeply Judge Shurtleff drilled deep repeatedly on two questions in which he seemed most interested: why Whitney had taken no action to recover in notes taken to Chicago bank and why he had not started suit against the directors for their alleged in operating the bank. Of the Whitney said it was his impression that he would go after the notes when the bank had collected $450,000 due it on a loan to the Waukegan State. On the director liability angle he frankly admitted that the thought had not come to his mind and that he would give it prompt consideration.
17.May 11, 1932Chicago TribuneChicago, IL
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COURT ACTS TO OUST WAUKEGAN BANK RECEIVER
Circuit Judge Edward D. Shurtleff at Fred Brown Whitney, for the closed Waukegan State bank, to show cause by noon today why he should not be removed as Whitney prominent and son of former judge. Judge Shurtleff asked Whitney if he ever had asked court order directing the Central Republic Bank and Trust of Chicago to return $841,000 in securities. Whitney said he had and added the securities collateral for loan $450,000. The court then Whit ney not that and putting the Chicago bank in the classification of an Whitney asked why he had not against tors of the bank the ground they negligent liable to the depositors. Whitney said he had never heard of such action by receiver. He told court was ready to resign then, but was told to wait until today. It was brought out that Whitney had refused to consent to sale of the assets of the bank for 35 cents on the dollar reorganization committee which seeking to open new bank.
18.May 11, 1932Waukegan News-SunWaukegan, IL
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MAY REQUEST RESIGNATION OF RECEIVER
Dismissal Of The State Bank Receiver Today Taken Under Advisement By Court Until Tomorrow Morning.
The removal of Attorney Fred Brown Whitney receiver of the Waukegan State bank was taken under advisement today Circuit Judge Edward Shurtleff. The court said decision would be made in the morning. Whitney pleaded with the court tc read another of documents that he the hearing. He said that he wanted remain the job, not because personally wanted because the the Waukegar State Bank Depositor's committee wanted remain. H. Frank president, dressed the court this and urged the retention of the receiver. Whitney Lawyer In Whitney brought lawyer to court with him for the first torney G. Snyder, of the Litchfield Snyder. This handled work referred Whitney since the previous firms, Decker Decker Miller resigned. Both firms time that "press of made possible their handled firm Litchfield Snyder asked Whitney. "No Whitney Asks Snyder opened by asking petition which he explained that he proofs Whitney's through documentary evidence that three and 12 hours more time could given him. think the court should wait fully advised. the wants this are to supply We here other 500 pages acts of the Snyder open to present anything you might Whitney's behalf to why he should not removed receiver," Shurtleff replied. Whitney then took the stand and Snyder opened the the assets turned over the Waukegan State prior its closing Chicago bank. These assets, the court has contended. should have been returned and repeatedly has Whitney for not taking action have the notes brought back to the Waukegan State. Judge Asks The judge to inquire into the costs of the and putting questions Whitney that his payroll was $700 to $750 month his own salary $5,000 year. Later Whitney testified that continue the receivership would cost $1,000 monthly. court said informaton that the was costing the depositors $83 daily. Whitney said that made mand for the return notes July 31, 1931, three days after was appointed receiver. had return correspondence but he lawyer out from Chicago whom the matter. The in the office Judge Martin Decker and State Auditor Oscar Nelson was there, Whitney
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19.May 12, 1932Wausau Daily HeraldWausau, WI
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Bank Receiver is Removed By Judge at Waukegan, III.
Fred B. Whitney, was removed to day as receiver of the Waukegan State bank and Circuit Judge Edward D. Shurtleff appointed L. J. Wilmot in his Wilmot is clerk of the district court. Judge Shurtleff held that Whitney had failed to carry out his duties as receiver. Specifically, in bearing yesterday, court pointed out that Whitney should have regained for the defunct Waukegan bank $841,000 in notes given as collateral for of $450,000 from Trust Radio Introduced in Trial At Madison; Man Released
Madison, May Foster Perkins, 24, of Eau Claire, was held for jury trial after preliminary hearing here in superior court yesterday charges of robbery. radio involved the robbery was introduced as evidence the claim made that Perkins had left it in his home near Eau Claire. Charges against Leighton Filner. 23, Madison. involved with Perkins, were dropped.
20.May 12, 1932Belleville Daily AdvocateBelleville, IL
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BANK RECEIVER REMOVED BY COURT
May Fred Whitney removed today receiver of the Waukegan State Bank and Circuit Judge Edward Shurtleff appointed Wilmet stead. Wilmot clerk the circuit Judge Shurtleff held that had failed to out receiver. Specifically, yesterday, the court pointed that Whitney should have gained defunct Waukegan notes given loan $450,000 Republic Bank Company Chicago. Judge
21.May 13, 1932Waukegan News-SunWaukegan, IL
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WHITNEY
Prominent Realtor Appointed Today By Judge Shurtleff To Handle Receivership Of Waukegan State Bank.
John R. Fulton. of 16 North Utica street, head of the John R. Fulton real estate firm. today was appointed receiver of the Waukegan State bank by Circuit Judge Edward D. Shurtleff. He is to succeed Attorney Fred Brown Whitney, who was removed by Judge Shurtleff on the grounds that he was inactive. Circuit Clerk Wilmot. was first appointed by the court, refused to serve for lack of time to give to the task. Will Accept Post Fulton said would accept and he left this afternoon for Chicago to enter into with State Auditor Oscar Nelson covering the bond that must be posted before he be qualified take the direction the liquidaHe intends to give full time to the the real estate in the hands of his two Donald, business with their father. liquidate the bank as fast as possible without injuring any of the depositors. would like ask the co-operation of all concerned this will be an important factor in discharging the duties of the office. The came unsolicited had no thought to know that my friends highly of me urge my appointment," Fulton Has Experience Fulton spent 28 years in the banking business Waukegan. served ten years with the First National bank and when the Peoples State bank organized he became the cashier and served in that capacity until 1918 he resigned to become associated with manufacturing enterprise. the same time he entered the real estate field and has been in business since. Last year Fulton was president of the Chamof Commerce and also president of the Chicago real estate board. He is director in Judge Shurtleff spoke but briefly making the the matter of the Waukegan State he said, will appoint John R. Fulton, as ceiver, and the question of the bond will be left to the state auditor.' Later Fulton came to the courthe held brief conference with Judge Shurtleff during which he said he would accept the appointment.
Was Suggested Originally Fulton was originally when the post was given to Whitney. Demurrers of several stockholders of the bank the suit to enforce stockholder's liability were down hearing today Judge Shurtnotice by Attorney Bernard Decker, Decker DeckThese hearings be sprinkled over period of three days. Decker instructed yesterday by Judge Shurtleff to advise Alvah Rogers, receiver under the liability suit, to proceed as the court believes the directors the bank be held liable over and above the double liability. court going to force the here and see can't accomplished. have bank before you know he declared.
22.May 15, 1932Chicago TribuneChicago, IL
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ABANDON HOPE OF REOPENING WAUKEGAN BANK
State's Attorney A. V. Smith of Lake was of of the Waukegan State bank, there no further of ing the affairs and reunder Mr. that the trial Miller, with as result of the of the affairs shortly before the would go ahead in the Circuit court at WauNorman O. of the State bank, vice of the the Republic in Chicago indicted with Miller, but obtained separate committee of the petitioned Circuit Judge D. Shurtleff to his removal of Fred Brown Whitney as receiver. The member asserted they full confidence in Whitney that he had been removed chance to face those who alleged he was not making progress in winding up the institution's affairs. Judge Shurtleff will pass on the petition later.
23.July 28, 1932Belleville Daily AdvocateBelleville, IL
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CONVICTION OF DIFFICULT TASK
Lake County Fails In One Effort With the Acquittal of Former Bank Official.
WAUKEGAN III., July 28. Lake county's efforts to convict bankers of Waukegan and Chicago of responsibility for the closing of the Waukegan State Bank appeared more difficult today after the acquittal of William H. Miller The former vice president of the National Bank of the Republic Chicago was freed of charge conspiracy defraud depositors of the defunct Waukegan bank by jury which deliberated only 90 minThe vote was 10 to two for acquiton the first ballot. The trial before Circuit Judge Edward Shurtleff of McHenry county lasted five weeks. was the second tempt by Lake county to assign sponsibility for the failure of the bank in June, 1931 similar charge against State Auditor Oscar Nelson was dismissed by State's Attorney Smith cently Judge Shurtleff previously had freed Nelson of charge misfeasance in office Smith to comment on possibility that George former chairman of the old National Bank of the Republic, and President Norman O. Geyer Cashier M. Connors of the Waukegan bank might tried similar charges pending against them.
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24.November 25, 1932Waukegan News-SunWaukegan, IL
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ELMER HULSE OF REPUBLIC
Seeks To Get Back In Collateral That Chicago Bank Now Holds But Which, He Contends, Belongs Here.
Providing Elmer Hulse, receiver the Waukegan State bank. can show Circuit Judge Ralph Dady that the bank can finance suit against the National Bank of the Republic for in collateral held there, he will grant the receiver the right bring suit, the court indicated today. however, preferred claimants of the bank forced to finance portion the then the court will not grant permission for the proceedings, he National Bank of the Republic collateral the Waukegan State bank to protect $450,000 made the Waukegan bank 1931. It's Bank Property Some of the have in the bank contend that this entirely the property of the Waukegan State sent Chicago illegally by Norman Geyer, president the Waukegan State was posted collatprotect the without the knowledge consent of the board directors the Waukegan State violation of the by-laws of the The preferred claims the bank must honor dollar dollar aggregate approximately $322,000. Hulse advised the court, although the bulk this tied up in suits pending the supreme The session was an informal affair which than tied up the bank invited, attorneys interested in the proceedings. Over Deals Leland Neeves, of the firm Scott, McLeish Falk, Chicago, explained the deals within the bank prior to its and then went into the possibilities the suit against the Chicago bank, well Liberty bonds in the amount of $250,000 impounded indemnity companies protect these cerns that surety bonds for the of Waukegan and the countreasurer explained that he thought general depositors the would receive between and 35 cents the dollar the He stated deposit now, about third of the amount preferred creditors. Attorney Snyder, of LitchSnyder. for the that the in Chirepresented the difference tween dividend coud be paid, and without probably none. Neeves estimated the cost of such would range between $10,000 and circuit judge has the sole power to such
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
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